I'm not understanding about this part. If I create a color layer, create a text layer on top of it, why not just merge the text down to the color layer?

I do understand about making a new layer and dragging the thumbnail to the new layer button.

The idea is that you drag the thumbnail of an existing layer to the New Layer button. This will create an empty* new layer (above the original) having the same dimensions. It would be similar to duplicating the layer and then "Edit->Clear" but you don't have worry about there being a selection or the layer having an the alpha channel.

Since the new layer is created above whichever layer was dragon-dropped, in the example of a text backdrop, it needs to be lowered to be beneath the text layer.

* "Empty" meaning being filled with one of FG color, BG color, WHITE, or transparency.

Thanks for the clarification. Good tip.

Border Average (Colors + Info → Border Average), not only works on an image and a selection but also an active Path.

How do you make it work with a path (without doing Select>From path first of course)?

@ Odinbc
Thanks for bringing up this old thread. A lot of good info that I had forgotten about, but it might take a while to reread.